You can choose to store the total burdened cost as a value along with the raw cost on each expenditure item. The total burdened cost equals the raw cost plus the sum of the burden cost components. With this method, you can easily view the total burdened cost and the raw cost of each item. Oracle Projects displays the raw and burdened costs of the expenditure items on windows and reports.
The example in the following table illustrates the total burdened cost method. With this method, the raw cost is stored on each expenditure item. The burdened cost is calculated and then also stored on each expenditure item. The burden cost shown in the table is an interim value that is not stored. In this example, Labor is burdened and Computer Rental is not.
| Item | Transaction | Raw Cost | Burden Cost | Burdened Cost |
|---|---|---|---|---|
| 1 | Project A, Task 1.1, Labor, August 29, Amy Marlin | 100.00 | 200.00 | 300.00 |
| 2 | Project A, Task 1.1, Labor, August 29, Don Gray | 200.00 | 400.00 | 600.00 |
| 3 | Project A, Task 1.1, Computer Rental, August 29, Data Systems | 500.00 | 0.00 | 500.00 |
| Totals | 800.00 | 600.00 | 1,400.00 |
The following table shows the detail of the burden cost on Item 1 in the table above.
| Burden Cost Element | Amount |
|---|---|
| Fringe | 40.00 |
| Overhead | 100.00 |
| General and Administrative | 60.00 |
| Total Burden Cost | 200.00 |
Oracle Projects calculates the burdened cost of each expenditure item in the Distribute Cost processes. For supplier invoices, the burdened cost of each expenditure item is calculated in the Interface Supplier Invoices from Payables process.
Note: The burden cost of each item may be comprised of a buildup of individual burden cost components, as shown in the table above. This is not readily visible by looking at the expenditure item. However, Oracle Projects provides the ability to report this buildup of burden cost for each individual expenditure item. For more information on reporting the individual burden cost components when you use this method of storing burden amounts, see: Reporting Burden Components in Custom Reports.